Indeck Energy breaks ground on Mississippi plant

By Anna Austin
Web exclusive posted Nov. 21, 2008 at 12:27 p.m. CST

Buffalo Grove, Ill.-based Indeck Energy Services Inc., a privately held developer, owner and operator of renewable and conventional energy projects, broke ground Nov. 20 on a wood pellet production plant in Magnolia, Miss.

The company expects the Indeck Magnolia Biofuel Center to be operational by September 2009.

The company received its final air permit for the plant from the Mississippi Department of Environmental Quality on Sept. 5, and immediately began marketing and pre-selling its residential-grade and industrial-grade pellets.

Indeck Energy said it already has a number of letters of intent for sales amounts exceeding the plant's 90,000 ton annual nameplate production capacity. Indeck Energy Manager of Business Development Nunzio Maniaci said the presales have been primarily in the northeast United States, including New England, New York, and Pennsylvania.

Although in the future Indeck Energy anticipates significant bulk sales to European markets, it expects local and regional sales to residential and industrial customers will be key to the long-term success of the venture.

Maniaci said Indeck Energy has a long-term contract with a large local wood provider. "All the wood will come from a 50-mile radius of the plant," he said.

Indeck Energy currently has a wood pellet plant under construction in Ladysmith, Wis., which received its final permit on June 17. That plant is expected to be in operation by July 1, 2009.